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some 12,000 older Samands during that period.
The company previously said it was looking to export to other regional markets including Russia and Georgia , countries in which Iran has previously sold vehicles.
The project between IKCO and AzerMash was kickstarted in 2016 with capital of 24mn manats ($14.1mn at the time). AzerMash owns 75% of the company. It officially opened during the Persian Nowruz new year period in March 2018, with the presidents of Iran and Azerbaijan attending the inauguration. Meanwhile, IKCO has jacked up the prices of its locally assembled vehicles by an average IRR100mn ($885 at the free market rate), Iran Student News Agency reported on January 9.
IKCO suffered a massive reduction in produced vehicles and sales over the past six months, during which time the value of the Iranian rial (IRR) collapsed against the dollar. The huge devaluation forced many would-be buyers of cars on to the second-hand market. IKCO has for months been debating big price increases given the much higher foreign currency costs the company must endure in order to pay for parts and raw materials.
Iran’s parliament has passed a vote that means the government is obliged to fully divest its stakes in the country’s two largest car manufacturers within three years, ICANA reported on January 22. State-owned Iran Khodro (IKCO) and SAIPA have been a drag on the government’s coffers since they were taken into state ownership following the 1979 revolution. A lack of investment and a reliance on foreign partners have left the companies producing cars designed in the 1980s, including the Kia Pride and Peugeot 405.
The plan went through parliament with 113 votes for, 36 against and 20 abstentions, placing the ball in the Rouhani administration’s court to cede ownership of the automaker stakes to the private sector.
MPs want to see the government withdraw from acting as an entrepreneur in the automotive industry; they say it should only be involved in policymaking and regulation. Conflicts of interest from the government developing regulations while also profiting from vehicle manufacturing could develop, they say.
SAIPA, Iran’s second biggest carmaker, has appointed its latest CEO, who follows a succession of predecessors seen in the past several years. On January 21, Mohammad Reza Soroush was removed from his post as CEO after barely four months in the job and was replaced by Mirjavad Soleimani.
9.2.3 Transport corporate news
Flag carrier IranAir has bought three 17-year-old Airbus A319s that originally belonged to Tajik Asia Sky Lines, the Iran Chamber of Commerce, Industries, Mines and Agriculture stated on its website on February 24.
In the face of US sanctions which have wrecked IranAir’s plans to acquire scores of planes from aircraft manufacturers including Airbus and Boeing, the carrier and other Iranian airlines have been scouring the markets for aeroplanes they can find ways to obtain. The three new planes bring IranAir’s number of operational aircraft up to 32, the airline said.
The three planes, coded EY-557, EY-558 and EY-559, have a colourful history. Official documents show that they were owned by Tajik Asia Sky Lines. A Hungarian dealer is believed to be behind the sale, some Iranian reports have stated.
48 IRAN Country Report March 2019 www.intellinews.com